Faced with a Decline in Its Current Business,a Generic Drug

question 23

Multiple Choice

Faced with a decline in its current business,a generic drug manufacturer is planning a foray into design,and manufacture of re-locatable modular structures.Which diversification strategy is being employed by the company?

• A)Related diversification
• B)Backward integration
• C)Forward vertical integration
• D)Unrelated diversification

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Definitions:

Indirect Labour

Labor costs associated with workers not directly involved in the production of goods or services.

Direct Labour Costs

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Overhead Costs

Indirect costs of operating a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administrative expenses.

Work in Process Balances

Work in process balances refer to the value of materials and labor for products that are in the production process but not yet completed.